The "Informal Defence" of Free Markets Includes the Argument That

Multiple Choice

The "informal defence" of free markets includes the argument that competitive markets
1) lead to allocative efficiency;
2) provide automatic coordination of the actions of decentralized decision makers;
3) provide a stimulus to innovation and economic growth because of the pursuit of profits.

A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3